The Tax Reform Acceleration and Inclusion (TRAIN) Act took effect on January 1, 2018. This means NEW computation on compensation!

This one-day seminar is for individual and corporate taxpayers, whether for profit or non-profit, who want to learn how to properly compute for salaries, wages, and benefits to take advantage of the tax savings in the 2018 TRAIN provisions which impacts on employee compensations and benefits!

This learning opportunity will address both your labor and tax concerns which are the two major regulatory challenges in employee benefits administration. This solutions-oriented lecture will provide sample computations including the salary increases for NCR that took effect last October 5 and the revised tax rules for 2018 to highlight best practices in structuring wages and benefits to save your company millions of taxes and keeping your employees very happy with the savings.

Attendees will learn the use of De Minimis Benefits, Fringe Benefits, tax exemptions, new law and regulations on 13th month pay, updated allowable deductions, other benefits and more! They will also be shown how to link these new measures to create a cohesive and highly beneficial structure for employers and employees. This offers a window for companies to align compensation approaches with business strategies to achieve a program that attracts, retains and motivates workers and at the same time minimizes tax costs to businesses and their people.

3. Exemption from Withholding Tax and Exclusion from Computation of Gross Income
a. Applicable provision of the National Internal Revenue Code (NIRC)
i. Gross Income
ii. Exclusion from Gross Income
iii. Miscellaneous Items – 13th Month Pay and Other Benefits
b. Old ceiling of 13th month pay and Other benefits is P30,000.00

4. RA 10653
a. An act adjusting the 13th month pay and other benefits ceiling excluded from the computation of Gross Income
for purposes of income taxation. Amends Section 32 (B), Chapter VI of the NIRC
b. Total exclusion total exclusion shall not exceed eighty-two thousand pesos (P82,000) from previously
P30,000.00
i. Coverage of total exclusion
1. Christmas Bonus
2. Productivity Incentives

5. RR 3-2105 Implementing RA 10653
a. The amount of P30,000.00 referring to the total amount of 13th month pay and other benefits as one of the
exclusions from gross income was increased to P82,000.00
b. Application of P82,000.00 ceiling
i. 13th month pay
ii. Other benefits
iii. Applicable to those paid or accrued beginning January 1, 2015
c. Non-applicability to other compensation
d. Taxpayers-Employers shall ensure correct computation in the year-end adjustments and shall be clearly
indicated.
e. Case of Terminated Employees before the close of the calendar year
f. Penalty for violation

6. Sample computations

7. Structuring both DMB and 13th Month Pay and other Benefits Under the New Tax Rules

• Less 5% for early registrants (on registrations made on or before February 1, 2018)• Less 5% for early payment (if made on or before February 21, 2018)
• Less 5% for group registration (minimum of 3 participants)